Nifty in Reserve

Today Nifty closed above my expected resistance level of 7447 which was my 50 day average level and recommended target yesterday at “Double Dhamaka”. Looking at todays move on Index, it seems Nifty is going to be unstoppable for a day or two. Technically, Nifty seems to be approaching reserve level for this rally. We must rest  for a pit stop to move further smoothly without any steep correction. Now all technical levels for resistance are near to 7700 but i feel bulls would be exhausted before we reach there. Now Looking at options data i feel 7500 is strong resistance and one must surely book profits on long tomorrow morning. I feel as a trader one must take a bearish view for at-least 2-3 sessions . So as technical and options are coinciding for the resistance range 7450-7500, i would stay bearish but purely for trading perspective.

Recommended Strategy:

Sell 7500 CE and Buy 7300 PE

Net Payin: -78+104= +24/lot

Target:  7260 Stop loss: 7600

8 thoughts on “Nifty in Reserve”

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